How Do Organizational Values Affect Business Success? Having organizational values helps you make sure that all employees work towards the same goals. Core values support the company’s perspective and shape its culture. That’s why every business decision must be in line with these values.
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If you have not defined your organization’s values and shared them with employees, how can you build great teams, provide great customer service, and foster innovation?
The core values of the company shape its culture and influence its business strategy. They help you set goals, improve team cohesion and build a sense of commitment in the workplace.
Definition and principles of organizational values
In essence, organizational values are the beliefs, philosophies, and principles that drive business. They affect the employee experience you provide as well as the relationship you have with customers, partners and stakeholders.
Organizational values are the DNA of the company and help you differentiate your business from the competition. That’s why you can not make any important decisions without considering them.
How do organizational values drive business success?
As mentioned above, the values of the organization play a key role in your business.
Without them, it is almost impossible to align employees with your strategic goals, strengthen teamwork, or empower employees; Because:
1. The values of the organization help employees to make the right decisions
Having a clear set of values helps employees understand what you are committed to. The values of the organization also give them guidance for their work and a sense of security.
As a result, employees are more likely to make the right decisions; Decisions that help them achieve the company’s vision and goals. This is because they understand the company’s mission statement, share the values you adhere to, and believe in your brand.
In addition, having a well-defined set of organizational values provides an ethical way to guide employees in difficult situations. In an unstable environment with rapid technological, environmental and social changes, this is a necessity.
But to help employees make the right decision, you need to set the right organizational values, values that reflect what you believe. That’s why Simon Sink explains in his book, Start With Why, that you need to tell employees why your company exists, what your mission statement is, and what beliefs you stand for.
2. They help you improve employee communication
Employee communication plays a very important role in creating a better culture, improving satisfaction, and increasing their participation.
The problem is that when employers do not have specific organizational values, their relationships with their employees are often inconsistent and uncertain. This often leads to confusion in the workplace.
With clear corporate values, you can significantly improve employee communication in the workplace and help employees live up to those values.
3- They have a direct impact on employee motivation and participation
When employee relationships are built around the core values of the company, it helps increase employee motivation and participation.
In fact, if you explain to your employees your core values and the reasons why you stand for those particular values, they will have a better understanding of the company’s goals and will work harder to achieve them.
Committed employees are those who have clear guidance for achieving their personal goals as well as the goals of the company. They have a good understanding of what is expected of them and how to achieve business goals.
But most importantly, committed employees are those who share and strongly believe in your organization’s values. If you want employees to feel more involved, you need to define and share your company values.
4. Help customers understand what your company is committed to
In addition to helping employees thrive on the organization’s values, it is important to make sure customers understand your core values.
In fact, the company’s values help you clarify your brand identity and educate your customers about what the company believes.
The Covid-19 virus pandemic has completely disrupted the performance of businesses. Shops closed rapidly, teams dispersed around the world, and downsizing increased sharply; Especially in the aviation industry, hotels and restaurants.
A global crisis, such as the coronavirus epidemic, is a real test that shows that the values set by companies are real or just part of a communication program.
In fact, people (including employees) tend to question the trust of companies in times of uncertainty and anxiety, such as during an epidemic.
Businesses actively value their core values to build or regain employee and customer trust.
“Have we done the right thing?”, “Do the decisions we have made align with our company’s values?”, “Have we done all we can to empower employees during this difficult time?” “Do we value what we have left?”
It is too early to say to what extent Covid-19 is going to change the way companies define and transmit core values, but what is certain is that the actions that companies are now taking to strengthen their values will have a direct impact on their ability to Gain the trust of the people again and get through the crisis.